Petroleum Minister Highlights Energy and Shipping as Pillars of India’s Growth

Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, addressed the ‘Revitalizing India’s Maritime Manufacturing Conference’ in Mumbai during India Maritime Week 2025. He underscored the critical link between India’s economic growth and the progress of its energy and shipping sectors.

India’s Economic and Trade Outlook

The Minister stated that India’s GDP has reached approximately $4.3 trillion, with nearly half contributed by the external sector, including exports, imports, and remittances. This highlights the importance of trade and shipping for sustaining India’s growth trajectory.

Rising Energy Demand and Import Dependence

India currently consumes about 5.6 million barrels of crude oil per day, up from 5 million barrels four and a half years ago, and is expected to reach 6 million barrels soon. According to the International Energy Agency, India will account for nearly 30% of the global rise in energy demand over the next two decades.

During FY2024–25, India imported around 300 million metric tons of crude and petroleum products and exported about 65 million metric tons. The oil and gas sector represents 28% of India’s total trade by volume, with 88% of crude oil and 51% of gas requirements met through imports.

Shipping Industry Challenges and Government Initiatives

Currently, only 20% of India’s trade cargo is carried on India-flagged or India-owned vessels. The government is implementing measures such as aggregating PSU cargo demand for long-term charters, advancing the Ship Owning and Leasing (SOL) model, creating a Maritime Development Fund for affordable vessel financing, and introducing Shipbuilding Financial Assistance Policy 2.0 with higher support for LNG, ethane, and product tankers.

Investment Outlook and Global Connectivity

The maritime sector is projected to attract ₹8 trillion in investments and create 1.5 crore jobs by 2047. India is also strengthening global trade routes through initiatives like the India–Middle East–Europe Economic Corridor and the International North-South Transport Corridor, linking Indian ports with Europe, Central Asia, and Africa.

Read More: Indian Refiners Turn to New Suppliers.

Conclusion

India’s energy and shipping sectors remain pivotal to sustaining economic growth and trade competitiveness. With rising energy demand, strategic investments, and global connectivity initiatives, the maritime industry is set to play a transformative role in India’s development journey.

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